Glenn's Story
Several years ago, I was asked to serve as Chairman of the Board for a local Not-For-Profit. Who could have said no to such an invitation? It was a faith-based “good work” bringing the arts, after-school programs, and a demonstration of God’s love to a local community in need.
Energy was high, volunteers recruited, a suitable site found, and we were on our way. Since we had a limited budget and no real assets, no one gave much thought to the need for Directors & Officers liability insurance.
The ministry was a success, yet in our third year disaster almost struck. One of our volunteers (without Board permission) drove four young people to the shopping mall for a day of fun. On the way home they had an accident and two of the passengers suffered facial lacerations and other minor injuries.
Our Not-for-Profit was named in a law suit along with our volunteer’s auto carrier, the volunteer’s parents, and the church. Guess what we learned the hard way? If the organization does not maintain insurance, the Directors & Officers can be made personally liable for damages.
Our team was fortunate in that after two years of litigation, the case was settled under the limits provided by the auto carrier. From that point on, the Board resolved to carry sufficient D&O limits – even if it meant paying the premiums out of our own pockets.
My encounter with such a potentially devastating – from a personal financial aspect – situation made me think about others who volunteer their time to serve on the Board of non-profit enterprises. Even in my capacity as a seasoned insurance professional, I failed to appreciate the significance of the management liability exposures these organizations face. How many other selfless Board members are placing both themselves and their non-profit at risk by going uninsured?
The GoodWorks initiative was designed to help address these concerns. Our goal was two-fold. First, we wanted to educate Board members about the numerous liability exposures their non-profit faces on a daily basis. In addition, we wanted to build a platform through which interested entities could purchase valuable D&O protection simply and easily. We were fortunate to have partnered with an insurance company who shared our commitment to the non-profit community.
We look forward to having the opportunity to help altruistic organizations secure the management liability coverage they need.
Sincerely,
Glenn W. Clark CPCU
President, Rockwood Programs Inc.
